BILL ANALYSIS Ó AB 2543 Page 1 Date of Hearing: April 13, 2016 ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW Cristina Garcia, Chair AB 2543 (Gordon) - As Introduced February 19, 2016 SUBJECT: State buildings: efficiency SUMMARY: Assigns primary responsibility for developing a multi-year energy efficiency plan for state facilities to the California Energy Commission (CEC), instead of the Department of General Services (DGS), and expands the scope of the plan to include water conservation. Specifically, this bill: 1)Revises the existing requirement to develop a multi-year energy efficiency plan to give the CEC lead responsibility, instead of DGS, and requires the CEC to solicit input from both public and private entities when developing the plan. 2)Adds water conservation measures to the scope of the plan. 3)Specifies that the plan shall not prohibit, limit, or supersede more stringent green building requirements for public buildings. 4)Excludes state-leased buildings from the plan, except those financed through lease-revenue bonds. 5)Requires DGS to consult with the CEC when making recommendations to improve energy and water efficiency in AB 2543 Page 2 state facilities and submit a related report to the Governor and Legislature by January 1, 2018. EXISTING LAW: 1)Requires DGS, in consultation with the CEC, to develop a multi-year plan, to be updated biennially, with the goal of exploiting all practicable and cost-effective energy efficiency measures in state facilities. 2)Directs DGS to coordinate plan implementation efforts and make biennial recommendations to the Governor and Legislature to achieve energy efficiency goals for state facilities. 3)Requires DGS to include all of the following in its biennial report for projects under its jurisdiction: a) Progress made toward implementing energy efficiency measures in state facilities; b) The most common energy efficiency measures being implemented; c) Obstacles preventing further implementation of energy efficiency measures; and, d) How current efforts and ideas can be incorporated into the Governor's five-year infrastructure plan. 4)Requires all new state buildings, as well as existing buildings when renovated or remodeled, to meet energy efficiency standards adopted by the CEC, and requires DGS or other responsible state agencies to consider additional energy efficiency measures that are cost-effective and feasible. 5)Requires the state to take specified green building actions, as described in the Green Building Action Plan (GBAP), including aggressively reducing state building electricity usage by 20% by 2015; and siting, constructing, and operating all new and renovated state-owned facilities as Leadership in Energy and Environmental Design (LEED) Silver or higher -certified buildings. AB 2543 Page 3 FISCAL EFFECT: Unknown COMMENTS: According to the author, this bill "seeks to create a stronger investigative partnership between the CEC and DGS in order to identify potential measures for greater energy and water efficiency in state buildings." This bill would give the CEC a greater role in ensuring that the state is doing as much as possible to reduce energy and water consumption. Currently, DGS is the state's lead agency in the greening of government. Among other green responsibilities, it develops the statutorily-required multi-year energy efficiency plan for state buildings and provides a biennial report to the Governor and Legislature that contains specific information on energy efficiency projects in its jurisdiction. This bill would instead shift primary responsibility for the plan to the CEC and include water conservation measures in the scope of the plan. In its most recent March 2013 biennial progress report to the Legislature, DGS notes that "despite a lack of available funding specifically designated for energy efficiency projects, DGS continues to lead the state's efforts to meet the energy efficiency standards defined in greater detail in the GBAP." Standards outlined in the GBAP include, among other things, the following: greenhouse gas emissions, energy efficiency, on-site renewable energy goals, water efficiency and conservation, building design and construction, building commissioning, existing buildings, indoor environmental quality, electric vehicle charging stations, and environmentally preferable purchasing. While it does not have a formal position on this bill, the CEC has raised concerns about its lack of staff resources to devote to the lead effort required in this bill and has indicated that it would not consider itself an expert in developing operational AB 2543 Page 4 water conservation plans or overall strategies to conserve water in state-owned buildings. DOUBLE REFERRAL: This bill has been double referred. It was previously heard in the Assembly Natural Resources Committee on April 4, 2016, and passed with a vote of 9-0. REGISTERED SUPPORT / OPPOSITION: Support California Municipal Utilities Association City of Sacramento Opposition None on file Analysis Prepared by:Cassie Royce / A. & A.R. / (916) 319-3600 AB 2543 Page 5